Exxon Mobil CEO says Q2 results reflect 'disparate impacts' of commodity prices“We are delivering on our investment and operating commitments across ExxonMobil’s integrated portfolio. Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management,” said Rex Tillerson, chairman and CEO. Downstream and Chemical segment earnings increased significantly from the second quarter of 2014, driven by higher margins, continued strong demand, and the quality of the company’s product and asset mix. Higher Downstream and Chemical earnings were more than offset by the impact of weaker Upstream realizations and lower asset management gains.

Exxon Mobil reports Q2 Upstream volumes up 3.6%ExxonMobil produced 4M oil-equivalent barrels per day, an increase of 139,000 barrels per day, or 3.6%. Liquids volumes of 2.3M barrels per day increased 11.9%, benefiting from new developments in Angola, Canada, Indonesia and the United States. Upstream earnings were $2B in Q2, down $5.9B from the second quarter of 2014. Lower liquids and gas realizations decreased earnings by $4.5B, while volume effects increased earnings by $330M driven by new developments. All other items decreased earnings by $1.7B, including the one-time $260M deferred income tax impact related to the tax rate increase in Alberta, Canada, and the absence of prior year asset management gains.

Phillips 66, Energy Transfer Partners, Sunoco Logistics form JVPhillips 66 ( PSX), Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) announced that they have formed a joint venture to construct the Bayou Bridge pipeline that will deliver crude oil from the Phillips 66 and Sunoco Logistics terminals in Nederland, Texas, to Lake Charles, Louisiana. The joint venture will also launch an expansion open season for service to the market hub in St. James, Louisiana. Phillips 66 holds a 40% interest in the joint venture and Energy Transfer and Sunoco Logistics each hold a 30% interest. Sunoco Logistics will be the operator of the system. Construction is underway on the Nederland to Lake Charles segment of the pipeline, which will be 30-inch diameter and is expected to begin commercial operations in Q1 of 2016. The companies will also launch a binding expansion open season to assess additional shipper interest for service with connectivity to existing terminal infrastructure and refineries in and around the St. James area. The results of the expansion open season will be used to determine the size of the pipeline to St. James, which has a forecasted in-service date of the second half of 2017. The binding expansion open season will commence in Q3 of 2015. Bona fide potential shippers that would like to receive copies of the expansion open season documents, the throughput and deficiency agreement, and proposed tariffs must first sign a confidentiality agreement.

Euro, U.S. oil and gas groups to find tough competition in Iran, WSJ saysEuropean and U.S. oil and gas firms drawn to Iran as sanctions lessen can expect not only opportunities, but also Iranian companies offering tough competition or joint ventures, the Wall Street Journal reports. Though no Iran-based companies have the clout of firms such as Exxon Mobil (XOM) or Schlumberger (SLB), companies that can take on engineering tasks are emerging and growing in Iran, the report says. If the Iran nuclear agreement comes into effect and sanctions are lifted against Iran sometime soon, those Iranian companies will be well positioned to compete for tens of billions of dollars worth of service contracts, the report adds. Other publicly traded companies in the space include BP (BP), Chevron (CVX), ConocoPhillips (COP), Royal Dutch Shell (RDS.A) and Total (TOT). Reference Link